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Chinanews, Beijing, Jan. 31 – The State-owned Assets Supervision1 and Administration Commission of the State Council (SASAC) on Monday issued a document, which requires that when state-owned enterprises (SOEs) transfer their property rights to foreign enterprises, the deals should be done in property right transaction centers.
The notification stipulates2 that when the assignees of Chinese state-owned enterprise property rights are foreign enterprises, economic organizations or individuals, the transactions should follow required procedures and be made openly in property right transaction centers. The notification says that in transferring the ownership of enterprises, assignors should make their requirements to assignees according to the Foreign Enterprises Industrial Investment Guidelines. Where there are clauses on restricting or forbidding foreign enterprises in their bidding for ownership of Chinese SOE property rights, assignors should include these clauses clearly in their bidding notice. Assignors should report the transference to the related functional3 department of the government for approval, before foreign enterprises can become the legal owners of SOE property rights through bidding. Investors4 from Hong Kong Special Administrative5 Region, Macao Special Administrative Region or Taiwan region should follow the same procedures as foreign enterprises when they bid for the ownership of SOE property rights.
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